The new proposal of Yearn Governance to amend coin’s tokenomics has triggered a new bull run for YFI.Yearn Finance’s YFI token has gone up by 25 % in one day, taking the tally to over 100% in the last seven days.The proposal is yet to become eligible for passage, though its four stages focus on rewarding holders and network contributors.
Several new blockchain projects are now inculcating advanced and innovative network features. In a competitive industry, only innovation will help new blockchain projects to make their presence felt in the market. Blockchain projects, like Yearn Finance, have enjoyed a fair share of the spotlight lately. It is mainly because of their crypto-centric innovations.
Yearn Finance has its own native coin to support its ecosystem. The coin goes by the name of YFI, and it has accumulated new highs over the last week or so. Yearn is based on the Ethereum network, and it allows the network to repossess and dispose of assets. This new element to a blockchain network has ensured more consumer attraction and engagement.
YFI continues to pump in a bearish market
YFI has a total of $5.5 billion in total value locked. Being a DeFi aggregator, it has earned a respectable position in the digital asset market. Now, the coin has gone up at a time when the rest of the market is struggling with a persistent bear trend. Almost every coin, including Bitcoin, is struggling in the market. YFI has, nonetheless, accumulated over 25% in the last 24 hours or so.
Over the last week, Yearn has gone up by over 100%, which shows the token’s success. Previously, YFI achieved a high of over $82,700 in May this year. But it fell back and was being traded at around $19,600 by mid-December. The recent bull run of the coin has pushed its price to over $35,000. At the time of writing, YFI is valued at around $35,550.
The price hike of the token has shocked the entire crypto community as it was not expected by anyone. However, the price surge seems to be a reaction to the new tokenomics introduced by the Yearn Network. The proposal is currently circulating in the community, and it remains in the mandatory discussion phase. Even though it has not qualified for formal passage yet, the proposal has received attention from the community members of YFI.
Yearn moves to amend its tokenomics
The proposal of Yearn Finance to make changes in the network’s tokenomics constitutes four phases. Firstly, Yearn proposes that a portion of YFI tokens be bought back by the network. These coins will then be distributed as rewards among the network contributors and YFI holders. YFI tokens worth $7.5 million were bought back initially by Yearn from the open market.
Secondly, the blockchain network proposes four different ways of rewarding holders who lock their tokens. Thirdly, Yearn Developers will be granted the right to introduce new features as per their own will. Lastly, the proposal will pose restrictions on Yearn Governance. Only YFI tokens that were staked or locked in initial phases could be eligible for voting.
These key changes in the proposal are directed towards rewarding network contributors and holders. More YFI tokens will be locked up due to this proposal which will lead to the scarcity of the token. Token scarcity leads to a major price increase in coins, and therefore, this proposal is driving the popularity of the YFI token.
The decentralization of Yearn Finance is one of its most important features. There is no authority, individual, company, or developer that claims ownership over the network. Therefore, the network’s decision-making lies with the users through a decentralized autonomous organization (DAO).
The recent price hike of YFI will help the low supply coin gain more attention from the consumers and the crypto community. Back in October, the YFI community voted to restructure the network in order to acknowledge the desires of the community. Therefore, this proposal is an initial move towards ensuring these improvements.